πΌ Presumptive Taxation β Making Tax Compliance Easier for Small Businesses πβ¨Β by Return Filings Via Flickr:
Running a small business or working as a self-employed professional? The Presumptive Taxation Scheme can save you time, reduce paperwork, and simplify your tax payments.
π What is Presumptive Taxation? Itβs a simplified tax method where you pay tax on a fixed percentage of your turnover/receipts β no need to maintain detailed books of accounts or get a tax audit (if eligible).
β Who Can Use This Scheme?
Section 44AD β Businesses with turnover up to βΉ2 crore
Section 44ADA β Professionals with receipts up to βΉ50 lakh
Section 44AE β Transport businesses (up to 10 vehicles)
π How is Tax Calculated?
8% of turnover (6% for digital payments) under 44AD
50% of receipts under 44ADA
Straightforward calculation = fewer compliance headaches!
π Benefits β No detailed bookkeeping π β No tax audit (if conditions met) π β Predictable and transparent tax process β Lower compliance costs π‘
β Limitations: Once you opt in under 44AD, you must follow it for 5 years. Certain businesses like commission agents & e-commerce sellers arenβt eligible.
π Read full details with visuals: Flickr Post π Also on Pinterest: Presumptive Taxation Guide